IMF approves changes to surveillance rules

July 18, 2012|Reuters

WASHINGTON, July 18 (Reuters) - The International MonetaryFund on Wednesday approved changes to its rules on monitoringthe world's economies, which now make it mandatory for the IMFto assess whether one country's policies are negativelyinfluencing the international monetary system.

Until now, IMF assessments of economic spillovers wasvoluntary but the recent financial crisis showed that thepolicies of one country can easily impact others.

"While oversight of members' exchange rate policies remainsat the core of Fund surveillance under the articles, the newdecision will provide a basis for the Fund to engage moreeffectively with members on domestic economic and financialpolicies," IMF Managing Director Christine Lagarde said.